Daily Forex Market Preview, 09/03/2018
The euro currency was seen posting strong losses on the day as the currency pair fell following Draghi’s comments in the press conference. The central bank had tweaked its language by removing the easing bias, which briefly led to some gains. However, in the press conference, Draghi’s reference to global trade wars sent the euro lower.
In the U.S. President Trump signed a bill that imposes tariffs on steel and aluminum imports. Canada and Mexico were exempt from the tariffs which comes into effect in 15 days.
Looking ahead, the nonfarm payrolls data will be coming out today which will be the major event risk. Economists forecast that the U.S. unemployment could fall further to 4.0% while the average hourly earnings are expected to rise at a slower pace of 0.2%. The monthly nonfarm employment change is expected to show a headline print of 205k.
Canada will also be releasing its monthly payrolls report today with the unemployment rate expected to hold steady at 5.9%.
XAUUSD 09-03-2018 Intra-day analysis
XAUUSD (1317.25): Gold prices are on track to post a third day of declines after price failed to capitalize on the gains posted previously. The close below 1328 level indicates further downside in gold prices which could see 1303 level being tested once again. A close below this level will extend the declines toward the 1282 – 1274 level of support. To the upside, gains are likely to be limited near the 1328 region.